Place and Distribution
How a product reaches the customer: distribution channels from producer to consumer, and the difference between physical retailers and online e-tailers.
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Getting it to the customer 🚚
A brilliant product is no use if customers cannot get hold of it. **Place** is the fourth P of the marketing mix: getting the product to the customer at the right place and time. This module looks at the **distribution channels** a product travels through, and the difference between selling through physical shops and selling online.
The key words 🔑
Four terms describe how products reach customers:
Retailer or e-tailer? ⚖️
A business can sell through a physical shop, online, or both.
Match each part of the chain 🔗
- Retailer
- Wholesaler
- E-tailer
- Direct selling
- A physical shop that sells to consumers
- Buys in bulk and sells on to retailers
- A business that sells online
- The producer sells straight to the consumer
What is an e-tailer? 🎯
Which best describes an e-tailer?
- A business that sells its products online
- A physical high-street shop
- A company that buys goods in bulk to sell on
- A factory that makes the goods
Why sell online? ✅
Select the TWO advantages of selling online through e-commerce.
- It can reach customers almost anywhere
- It is open 24 hours a day
- Customers can physically try the product first
- It needs no delivery at all
The distribution channel 🛒
A **distribution channel** is the path a product takes from the producer to the consumer. Common channels are: producer to consumer (**direct**); producer to retailer to consumer; and producer to wholesaler to retailer to consumer. A longer channel has more middlemen, but can get the product into far more shops.
Distribution in words 🧱
The fourth P of the marketing mix is _____: getting the product to the customer. The path a product takes from producer to customer is called a distribution _____. A physical shop that sells to customers is a _____, while a business that sells online is an _____. A wholesaler buys goods in _____ and sells them on to retailers.
From producer to consumer 🪜
An interactive activity.
Spot the online selling 🖍️
An interactive activity.
Choose the channel 🧭
An interactive activity.
Recommend a channel ✍️
An interactive activity.